We all desire financial security for the future. If you’re concerned about running out of funds, it’s time to devise a financial strategy. Women particularly worry about this issue, and with good reason. We generally live longer than men, yet earn less throughout our careers, and we're twice as likely to pause our careers for caregiving responsibilities. This creates a significant challenge: managing more with fewer resources, leading to financial anxiety for many.

According to the 2023 State of Women survey, three-quarters of women (76%) expressed concern about ensuring their money lasts a lifetime. Furthermore, 45% defined “financial peace” as the ability to maintain a low-stress financial existence, which hinges on their funds enduring as long as they do. Thus, addressing the risk of outliving their money is a primary concern.

Clearly, mapping out a plan to alleviate these worries should be a priority. Here are five actionable steps to consider.

1. Assess Your Financial Situation

A common source of anxiety about running out of money in retirement stems from not fully understanding one’s financial situation.

“Fear is often diminished by knowledge,” says Pam Horack, a certified financial planner from Pathfinder Planning in North and South Carolina. “By reviewing your finances, you’ll see your income, savings goals, and monthly fixed expenses clearly. This visibility helps identify potential issues, and once you see them, you can address them.”

Begin addressing issues by looking at debt.

“Many credit cardholders pay over 22% in interest yet have cash earning little in savings,” points out Sri Reddy, senior vice president of Retirement and Income Solutions. “They might not realize this because they haven’t fully assessed their debts and assets.”

Once you grasp the big picture, review your daily spending habits—even those impulse buys online. “If money worries you, ask yourself why. Many know they overspend but feel stuck. The solution is tracking your expenses to pinpoint problem areas,” Horack advises.

2. Differentiate Between Needs and Wants

Living in a consumer-driven society makes it tough to distinguish between needs and wants, especially as you transition to a fixed income in retirement. “Everyone has needs and wants, but remember that fixed expenses aren’t always necessities,” Reddy explains.

For instance, while monthly expenses might include your mortgage and utilities, they could also encompass subscriptions and beauty treatments. “Just because it’s a recurring expense doesn’t mean it’s essential,” she adds.

Understanding this distinction before retirement is vital. Our needs often shift dramatically once we leave the workforce. “You may need to allocate more to healthcare but want to travel,” Horack notes. “Similarly, you may want a vacation home but need to downsize. These priorities will change, and you’ll need to adapt.”

3. Discuss Retirement Plans with Your Partner

Money is frequently a source of stress in relationships, so if you have a partner, it’s essential to align your retirement visions. Surprisingly, many couples discover they’re not on the same page.

“Begin by discussing how long you want to work, whether to fully retire or pursue part-time options, and how you’ll manage health insurance,” Reddy suggests.

If discussing finances feels tense, consider writing letters to each other outlining your retirement aspirations. “Exchange letters and discuss the differences. This can be a great conversation starter,” he recommends. Bringing in a financial planner can also help facilitate discussions.

Compromise may be necessary, and that’s perfectly fine! It’s crucial to reach those compromises before leaving the workforce, Horack emphasizes.

4. Be Cautious with Social Security

Making errors regarding Social Security—such as claiming benefits too early or misunderstanding options for divorced or widowed individuals—can cost you substantially in retirement, warns Reddy.

“Many people invest more time planning vacations than their retirement,” he states. “Take the time to meet with the Social Security Administration, analyze your options, and discuss experiences with friends.”

Ideally, in your early 50s, secure a meeting with the Social Security Administration to review your report and confirm your information is accurate. By addressing this a decade before retirement, you can prevent potential issues.

“Many women may find they lack enough credits to claim Social Security,” Horack observes. “You don’t want to reach retirement only to realize you have no benefits due to insufficient work history. Early calculations allow you to adjust your work plans if needed—and you might discover you enjoy it!”

One caution: While waiting until age 70 for benefits maximizes your payout, it’s not a universal solution. “If you plan to retire at 62 but delay claiming until 70, how will you support yourself in the interim?” This emphasizes the necessity of a tailored plan, which may include withdrawing from different retirement accounts to bridge the gap. Working with a financial professional is essential.

5. Consult a Financial Planner

Meeting with a financial advisor can significantly ease concerns about running out of money. They can help you assess your financial standing accurately.

“Some individuals may not have saved anything and should be worried,” Horack says. “On the flip side, others may have saved more than necessary but are hesitant to spend.”

This clarity can be especially helpful for women. “Women generally prefer certainty—this is not a negative trait. They want to know their spending limits to avoid anxiety,” Reddy explains.

Discover more strategies to prepare for retirement at principal.com.